Central Pacific Bank became the second local financial institution this week to beat earnings estimates as strong loan and deposit growth boosted net income 7.6 percent in the first quarter amid an improving state economy.

Corporate parent Central Pacific Financial Corp., holding company for the state’s fourth-largest bank, posted earnings of $11.2 million, or 35 cents a share, to beat analysts’ estimates of 33 cents. Bank of Hawaii, the state’s second-largest bank, announced Monday that it also topped analysts’ estimates.

A year ago, Central Pacific had net income of $10.4 million, or 29 cents a share.

Central Pacific, which has 35 branches statewide, has now posted 21 straight profitable quarters following $703.1 million in losses from 2008 to 2010.

“We’re continuing our positive momentum in 2016 with a great start to the year,” Catherine Ngo, president and CEO of Central Pacific, said Wednesday in a telephone interview ahead of today’s official earnings release. “We certainly are benefiting from a continued strong economy in Hawaii, and with that we saw strong loan and deposit growth in the first quarter.”

During the quarter, the bank returned to its income statement $747,000 it had set aside for potential loan losses compared with $2.7 million in the first quarter of 2015.

Ngo also said the bank plans to open its new two-level, 3,621-square-foot Kailua branch on June 27 at 6 Hoolai St. in place of the former Arby’s restaurant. It will be a full-service branch open Monday through Saturday and include 18 parking stalls, a drive-up teller during business hours, safe-deposit boxes, and an ATM and after-hours depository. The existing 2,078-square-foot Kailua branch a couple blocks away at 419 Kuulei Road will close June 25. Customers’ accounts and existing safe-deposit boxes will be automatically transferred to the new location.

“All of our customers will be pleased with the new branch because it’s a more attractive location, has better parking and will have a drive-through teller window,” Ngo said.

Central Pacific gradually has been building its loan portfolio since weeding out problem loans that mushroomed during the December 2007-June 2009 reces­ssion.

The bank’s loans jumped 11.5 percent in the quarter to $3.3 billion from $3 billion in the year-ago quarter. Central Pacific’s construction loans, however, decreased during the quarter from the year-earlier period because there were more loan paydowns than new bookings.

“We’re not focused on construction loans,” Central Pacific Chief Banking Officer Lance Mizumoto said. “They’re not loans that stay on the books very long because once the construction is finished, the construction loans are paid off.”

Central Pacific, which has dramatically reduced its delinquent loans over the last six years after being burned by the California real estate meltdown, had $496 million in nonperforming assets (NPAs) — delinquent loans not accruing interest and foreclosed real estate — in March 2010. But since that time the bank has sharply reduced that amount and had just $15.9 million in NPAs at the end of the first quarter. That was down 61 percent from $40.8 million in the year-earlier period.

The bank’s mainland loan exposure was just 14.5 percent, or $478 million, with no nonperforming assets as of the end of the first quarter. Its Hawaii loan exposure was 85.5 percent, or $2.8 billion.

“We are at a good level at this point in regards to NPAs as a percentage of total assets being 0.3 percent at the end of the first quarter,” Ngo said.

Deposits increased 7.4 percent to $4.5 billion in the quarter with core deposits — which include checking account deposits, savings and money market deposits, and certificates of deposit less than $100,000 — jumping 10 percent. Assets rose 5.6 percent to $5.2 billion.

The bank’s net interest income, the difference between the interest Central Pacific pays on deposits and the interest it receives on loans, rose 8.2 percent to $39.2 million from $36.2 million while its net interest margin improved to 3.33 percent from 3.28 percent. Noninterest income, which includes service charges and fees, declined 9.2 percent to $10.2 million from $11.2 million.

Central Pacific Chief Financial Officer David Mori- moto said he expects the bank’s momentum to continue throughout the year.

“The outlook for the state economy is a continuation of the relatively strong growth we’ve been experiencing,” Morimoto said. “The recent economic upturn has been … powered by strength in tourism and the construction sector.”

Central Pacific’s stock closed Wednesday down 24 cents at $22.17.